The Committee on Government Organization moved to amend the
bill by striking out everything after the enacting clause and
inserting in lieu thereof the following:

That §19-2C-1, §19-2C-3, §19-2C-5, §19-2C-5a, §19-2C-6,
§19-2C-6b, §19-2C-8 and §19-2C-9 of the Code of West Virginia,
1931, as amended, be amended and reenacted; and that said code be
amended by adding thereto three new sections, designated §19-2C-3a,
§19-2C-3band §19-2C-9a, all to read as follows:

ARTICLE 2C. AUCTIONEERS.

§19-2C-1. Definitions.

For the purposes of this article:

(a) The term "Auctioneer" means and includes a person who
sells goods or real estate at public auction for another on
commission or for other compensation. The term "auctioneer" does
not include:

(1) Persons conducting sales at auctions conducted by or under
the direction of any public authority or pursuant to any judicial
order or direction or to any sale required by law to be at auction;

(2) The owner of any real or personal property when personally
sold at auction by suchthe owner and suchthe owner has not
personally conducted an auction within the previous twelve-month
period;

(3) Persons conducting sales pursuant to a deed of trust; or
other security agreement;

(4) Fiduciaries of estates when selling real or personal
property of suchthe estate;

(5) Persons conducting sales on behalf of charitable,
religious, fraternal or other nonprofit organizations; and

(6) Persons properly licensed pursuant to the provisions of
article twelveforty, chapter forty-seventhirty of this code when
conducting an auction, any portion of which contains any leasehold
or any estate in land whether corporeal or incorporeal, freehold or
nonfreehold, when suchthe person is retained to conduct an auction
by a receiver or trustee in bankruptcy, a fiduciary acting under
the authority of a deed of trust or will, or a fiduciary of a
decedent's estate: Provided, That nothing contained in this
article exempts persons conducting sales at public markets from the
provisions of article two-a of this chapter, where the sale is
confined solely to livestock, poultry and other agriculture and
horticulture products.

(b) The term "public auction" means any public sale of real or
personal property when offers or bids are made by prospective
purchasers and the property sold to the highest bidder.

(c) The term(b) "Commissioner" means the Commissioner of
Agriculture of West Virginia.

(d) The term (c) "Department" means the West Virginia
Department of Agriculture.

(e) "Public auction" means any public sale of real or personal
property when offers or bids are made by prospective purchasers and
the property sold to the highest bidder.

§19-2C-3. Procedure for license; Department of Agriculture as statutory agent for licensees.

Any person who wishes to conduct an auction as

(a) An applicant for an auctioneer may apply for a license
shall:

(1) Apply on forms prescribed by the commissioner; and
containing such information as the commissioner may require by a
legislative rule promulgated in accordance with article three,
chapter twenty-nine-a of this code.

(2) Pay a nonreturnable application fee of $50 shall accompany
each application as well as and a license fee; andof $50. All
fees collected under this article shall be paid into a special
revenue fund in the State Treasury to be used by the Department of
Agriculture for the expressed purpose of administering and
enforcing this article and for providing continuing education for
auctioneers: Provided, That for the fiscal year ending June 30,
1997, fees collected under this article shall be paid into the
state fund, general revenue.

In addition to the payment of fees, an applicant shall

(3) File with his or her application a bond as required in
section four ofby this article.

(b) The commissioner shall, within thirty days after the
receipt of an application, notify the applicant of his or her
eligibility to be examined at the next regularly scheduled
examination, as well as the date of the examination.

In the event(c) If the license is denied, the commissioner
shall refund the license fee submitted with the application to the
applicant.

(d) All licenses issued expire on December 31 of each year.
but are renewableA license may be renewed upon the payment of the
annual licenserenewal fee within sixty days of the expiration
date. Renewals received more than sixty days after the expiration
date are subject to a late renewal fee of $25 in addition to the
annual renewal fee. The commissioner shall may not renew licenses
which have

(e) A license that has been expired for more than two years
andcannot be renewed until the auctioneer or apprentice auctioneer
shall taketakes the written and oral examination, and paypays the
examination fee in order to renew his or her license. The
commissioner shall may not renew a license unless the applicantand
complies with the other requirements of this article.

(f) Where an auctioneer or apprentice auctioneer requires a
duplicate or replacement license or a license reflecting a change
in information, the auctioneer or apprentice auctioneer shall
submit athe fee of $5 with the request.

(g) The state Department of Agriculture is the agent for the
purpose of service of process on anya licensed auctioneer for any
action occasioned by the performance of the duties of the
auctioneer. Every licensed auctioneer, by virtue of his or her
application for a license, shall be considered to have consented to
the statutory agency.

§19-2C-3a. Rulemaking.

(a) The commissioner shall propose rules for legislative
approval in accordance with the provisions of article three,
chapter twenty-nine-a of this code, to:

(1) Establish the license requirements for auctioneers and
apprentice auctioneers, including the bond requirements;

(b) The fees in effect on January 1, 2014, shall remain in
effect until modified by legislative rule.

§19-2C-3b. Special revenue fund.

All fees collected under this article shall be paid into a
special revenue fund in the State Treasury to be used by the
Department of Agriculture for the purpose of administering and
enforcing this article, and providing continuing education for
auctioneers.

§19-2C-5. Requirements for auctioneer license; duties of licensee.

(1) Each(a) A person seeking aan auctioneer license
hereunder after the effective date of this section shall submit
satisfactory evidence to the commissioner showing that he or she:

(a) That he or she(1)Has successfully completed the written
and oral examinations provided for inrequired by this article;

(b) That He or she(2)Has a good reputation;

(c) That He or she (3)Is of trustworthy character;

(d) That He or she(4)Has met the apprenticeship requirements
set forth in this article, if applicable;

(e) That He or she(5) Is a citizen of the United States; and

(f) That he or she(6) Has a general knowledge of the
auctioneering profession and the principles involved in conducting
an auction.

(2) The commissioner shall promulgate propose such reasonable
rules and regulations as he or she considers necessary to carry out
the intent and the administration and enforcement of this article,
which said rules and regulations shall be promulgated proposed for
legislative approval in accordance with the applicable provisions
of chapter twenty-nine-a of this code.

(3) Each(b) A licensee shall:

(1) Promptly produce for inspection suchhis or her license at
all sales conducted by or participated in by suchthe licensee when
requested to do so by any person; and shall

(2) Keep complete and accurate records of all transactions
engaged in for a period of six months, whichthree years.

(c) For the purposes of this section, the term “record”
includes, but is not limited to:

(1) Copies of signed contracts, including the names of buyers
and their addresses;

(2) Clerk sheets showing items sold, including buyers numbers
or names, and the selling prices; and

(3) Final settlement papers.

(d) The records of the auctioneer shall be open to inspection
by the commissioner or his or her authorized representative.

§19-2C-5a. Examinations of applicants; excuse for illness.

(a) Examinations shall be held in April and October of each
year, at a time and place to be designated by the commissioner or
his or her authorized representative.

Any(b) An individual auctioneer applicant may take the
examination for auctioneer or apprentice auctioneer at the
regularly scheduled time and place.

(c) The apprentice auctioneer's examination shall consist of
a written examination.

(d) The auctioneer's examination willshall consist of both a
written and oral examination. The passing grade for any written or
oral examination shall be seventy percent out of one hundred
percent. The oral portion will be scored by the commissioner or
his or her authorized representative.

(e) If the applicant fails either the written or oral portion
of the examination, no license will be issued and he or she shallmay not be administered the examination again until the next
regularly scheduled examination date.

(f) A person who is qualified for a auctioneer'shas an
auctioneerlicense as provided for in this article is considered to
be a professional in his or her trade.

(g) Only one notice only of the examination shallwill be
mailed or emailed to the applicant at the address given on the
application. If the applicant fails to appear for suchan
examination, except as provided hereinin this subsection, a new
application and a new fee shall be required. No fee shallwill be
returned, except when the applicant fails to take the examination
because of illness evidenced by a doctor's certificate sent to the
commissioner. If excused because of illness, the applicant shall
be admitted to the next scheduled examination without paying an
additional fee. No applicant shallmay be excused from taking the
scheduled examination for any reason other than illness, unless in
the judgment of the commissioner the applicant would suffer undue
hardship by not being excused.

(h) An examination fee of $50, in addition toand any other
fees required by this article, shall be collected from each person
taking suchan examination. If the applicant has previously paid
the examination fee and successfully completed the apprentice
auctioneer's examination, no additional examination fee will be
required to take the auctioneer's examination. as provided for in
this article

(i) If the commissioner determines that an applicant does not
qualify for a license, he or she shall so notify the applicant by
certified mail. The notice shall state:

(1) The reason for the refusal to grant a license; and

(2) The applicant's right to appeal the commissioner's
decision within twenty days of receipt of the notice.

(j) An examination shallis not be required for the renewal of
anya license, unless suchthe license has been revoked or
suspended, or has expired. in which case the applicant may be
required, byIf the license was revoked or suspended, then the
commissioner may require a person to take and pass anya written or
oral examination. required by the department In cases whereIf a
license has been expired for more than two years and was not been
revoked or suspended, then the applicant is required to take and
pass any written and oral examinations required by the departmentcommissioner. The commissioner is hereby authorized to promulgateas he or she considers necessary for the renewal of auctioneer
licenses, including, but not limited to, requirements for
continuing education of auctioneers.

§19-2C-6. Requirements for apprentice auctioneer license.

The Department of Agriculture may grant apprentice
auctioneer's licenses to those persons considered qualified by the
commissioner. Every applicant for

(a) A person seekingan apprentice auctioneer'sauctioneer
license must take and pass a written examination relating to the
skills and knowledge and statutes and regulations governing
auctioneers. Every applicant shall furnish to the commissioner, on
forms provided by the departmentcommissioner,satisfactory proof
of the followingthat he or she:

(a) That he or she(1) Has a good reputation;

(b) That he or she(2) Is a trustworthy character; and

(c) That he or she(3) Is a citizen of the United States; and

(4) Has taken and passed a written examination relating to the
skills and knowledge of the statutes and rules governing
auctioneers.

Any(b) An apprentice auctioneer may take the examination to
become an auctioneer after completing one of the following:

(1) Serving a two-year apprenticeship under a licensed
auctioneer; orProvided, That if the apprentice auctioneer has
attended

(2) Attending a nationally accredited graduate school of
auctioneering, approved by the commissioner, he or she shall serve
and serving an apprenticeship of only six months.

(c) Before an apprentice auctioneer may take the auctioneer's
examination, the apprentice auctioneer shall conduct at least six
auction sales under the direct supervision of the sponsoring
auctioneer. The commissioner may waive the requirements of this
section, on an individual basis, upon the presentation of written
evidence that the applicant has educational training or exceptional
experience in the auctioneering profession and that the applicant
has been unable to obtain sponsorship by a licensed auctioneer: Provided, however, That the commissioner shall promulgate rules and
regulations setting forth educational and experience qualifications
which would entitle an individual to a waiver of the provisions of
this section:Provided further, That the commissioner shallmay
not waive apprenticeship requirements for anyan applicant without
the concurrence of the board of review.

(d) When anyan apprentice auctioneer is discharged or
terminates his or her employment with an auctioneer for any reason,
the auctioneer shall immediately provide written notification to
the commissioner. No discharged or terminated apprentice
auctioneer shallmay thereafter perform any acts under the
authority of his or her license until suchthe apprentice
auctioneer receives a new license bearing the name and address of
his or her new employer. No more than one license shallmay be
issued to anyan apprentice auctioneer for the same period of time.
The fee for the transfer of the license of an apprentice auctioneer
to a new employer auctioneer is $15.

The fee for the annual renewal of the apprentice auctioneer's
license is $50. Bond requirements for an apprentice auctioneer
shall be established by reasonable rules and regulations
promulgated by the commissioner, and both the annual renewal fee
and the bond must be filed with the Department of Agriculture:
Provided, That the bond required by this section shall may not be
less than $5,000.

(e) The department shallcommissioner may not issue an
apprentice auctioneer'sauctioneer license until bond has been
filed. in accordance with this article All apprentice auctioneer
licenses expire on December 31 of each year, but are renewable upon
the payment of the annual fee.

(f) A person cannot be licensed as an apprentice auctioneer
for more than three years without applying for an auctioneer
license. Should an apprentice auctioneer allow the three year
limit to lapse, then the apprentice auctioneer shall be required to
take the apprentice examination and meet all the requirements of
this article.

§19-2C-6b. Duties and responsibilities of an apprentice
auctioneer and a sponsoring auctioneer.

An(a) A licensedapprentice auctioneer shall only conduct or
assist in auctions under the direct supervision of his or her
sponsoring auctioneer. A licensed apprentice auctioneer may not
enter into a contract to conduct an auction, unless the contract is
cosigned by his or her sponsoring auctioneer.

(b) The sponsoring auctioneer is responsible for:

(1) The actions of an apprentice auctioneer It is his
responsibility to ensure adherence to this and all applicable
sections of state law; Provided, Thatand

(2) Training the apprentice auctioneer in all aspects of
practical business functions and duties related to the
auctioneering profession.

(c) Should an apprentice auctioneer fail to pass both the
written and oral examinations to become a fully licensed auctioneer
in two consecutive testing sessions, the sponsorship will be
terminated. The apprentice auctioneer will be permitted one
additional opportunity to pass the oral and written auctioneer
examinations only after serving another six month apprenticeship
under a different sponsoring auctioneer.

(d) A sponsoring auctioneer relieved of his or her sponsorship
will not be considered for another sponsorship unless he or she
provides a written affidavit to the commissioner that he or she
fully understands the responsibilities of a sponsoring auctioneer
and gives the details as to what additional training will be
provided to a new apprentice auctioneer. If the commissioner or
his or her representative approves the presented plan, then an
auctioneer may be permitted to sponsor a new apprentice auctioneer.(e) If thean apprentice auctioneer conducts auctionsan
auction without the consent of his sponsoror her sponsoring
auctioneer, then only the apprentice auctioneer is subject to the
penalties set forth in section eight of this article.

§19-2C-8. Penalties.

(a) Criminal penalties. -- Any person, firm, association or
corporation violating any of the provisionsa provision of this
article or of the rules, and regulations adopted pursuant to the
provisions thereofshall beis guilty of a misdemeanor, and upon
conviction, thereof shall be fined not less than $50$250 nor more
than $200$500 for the first offense, and not less than $400$500
nor more than $1,000 for the second and subsequent offenses.
Magistrates have concurrent jurisdiction with circuit courts to
enforce the provisions of this article.

(b) Civil penalties. --(1) Any person violating a provision
of this article or any rule or regulation adopted hereunderthe
rules,may be assessed a civil penalty by the commissioner. In
determining the amount of anythe civil penalty, the commissioner
shall give due consideration to the history of previous violations
ofby the person, the seriousness of the violation, and the
demonstrated good faith of the person charged in attempting to
achieve compliance with this article before and after written
notification of the violation. (2) The commissioner may assess a
penalty of not more than $200 for each first offense, and not more
than $1,000 for a second and subsequent offense. and (3) The civil
penalty is payable to the State of West Virginia and is collectible
in any manner now or hereafter provided for collection of debt. If
any person liable to pay the civil penalty neglects or refuses to
pay the samepenalty, the amount of the civil penalty, together
with interest at ten percent, is a lien in favor of the State of
West Virginia upon the property, both real and personal, of such a
the person after the same has been entered and docketed to record
in the county where suchthe property is situated. The clerk of
the county, upon receipt of the certified copy of suchthe lien,
shall enter sameit to record without requiring the payment of
costs as a condition precedent to recording.

(c) Notwithstanding any other provision of law to the
contrary, the commissioner may promulgate and adopt rules which
permit consent agreements or negotiated settlements for the civil
penalties assessed as a result of violation of the provisions of
this article.

(d)(c) No state court may allow for the recovery of damages
for any administrative action taken if the court finds that there
was probable cause for such action.

§19-2C-9. Written contracts.

(a) No person shallmay act as an auctioneer on the sale at
public auction of any goods, wares, merchandise or of any other
property, real or personal, until he or she has entered into a
written contract in duplicate with the owner or consignor of the
property to be sold. containing the terms and conditions upon which
the licensee receives or accepts the property for sale at auction.
No apprentice auctioneer shallmay be authorized to enter into a
contract without the written consent of his or her sponsoring
auctioneer. All contracts shall be in the name of and on behalf of
the sponsoring auctioneer.

The commissioner may require by rule the following (a) That
written contracts

(b) The written contract shall:

(1) State the terms and conditions upon which the auctioneer
receives or accepts the property for sale at auction;

(2) Be between the auctioneer and the seller;

(3) Be made in duplicate;

(b) That the original contract is to

(4) Be retained by the auctioneer for a period of six monthsthree years from the date of final settlement;

(c) That one copy of the contract is to

(5) Be furnished to each person that entered into the
contract;

(d)(6) State that an apprentice auctioneer may not contract
directly with a client but only through his or her sponsoring
auctioneer;

(e)(7) State that an apprentice auctioneer may not engage in
a sale with an auctioneer by whom he or she is not sponsored
without first obtaining the written consent of his or her
sponsoring auctioneer; and

(f) That on all contracts between an auctioneer and a seller
there shall be

(8) Have a prominent statement indicating that the auctioneer
is licensed by the Department of Agriculture and is bonded in favor
of the State of West Virginia; and

(9) Include the following information:

(A) The name, address and phone number of the owner of the
property to be sold or the consignor;

(G) A detailed list of all fees to be charged by the
auctioneer, including commissions, rentals, advertising and labor;

(H) A statement of the auctioneer's policy regarding absentee
bidding;

(I) A statement above the owner's signature line: "I have read
and accept the terms of the contract"; and

(J) A statement indicating that an explanation of settlement
of the auction, or settlement sheet, will be provided to the owneror consignor at the end of the auction.

§19-2C-9a. Escrow accounts.

Each auctioneer shall maintain an escrow account and deposit
all moneys from each sale from an auction in the escrow account
within twenty-four hours of the completion of the sale or on the
first business day following the sale, unless the owner or
consignor was paid in cash directly at the end of the sale.